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| shareholders                                | registration      fund | percentage | first      investment | manner      of investment | due      date                                                                                                          |
|---------------------------------------------|------------------------|------------|-----------------------|---------------------------|------------------------------------------------------------------------------------------------------------------------|
| Yunnan      Investment Group                | ¥15,300,000     | 51%        | ¥15,300,000    | cash      in RMB          | in      60 days after sign the agreement and get the promise of open bank accounts      from Trade and Industry Bureau |
| Sino      Gas International Holdings, Inc.  | ¥11,700,000     | 39%        | ¥11,700,000    | cash      in RMB          |
| Qujing      Development Investment Co. Ltd. | ¥3,000,000      | 10%        | ¥3,000,000     | cash      inRMB           |

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| 1.   | decide      company’s strategies , investment plans and significant      adjustments |
|----------------|--------------------------------------------------------------------------------------------|

| 2.   | elect      and replace the directors and supervisors, decide the payments to      directors and supervisors |
|----------------|-------------------------------------------------------------------------------------------------------------|

| 3.   | examine      and approve the report of board ofdirectors |
|----------------|----------------------------------------------------------|

| 4.   | examine      and approve the report of board of supervisors or    supervisors |
|----------------|-------------------------------------------------------------------------------|

| 5.   | examine      and approve company’s annual financial budget, actual plan and related      significant adjustment |
|----------------|-----------------------------------------------------------------------------------------------------------------------|

| 6.   | examine      and approve the plan about company’s distribution of profit and recovery      of loss |
|----------------|----------------------------------------------------------------------------------------------------------|

| 7.   | decide      the decision about increase or reduce the registration capital of the      company |
|----------------|------------------------------------------------------------------------------------------------|

| 8.   | decide      the decision about issue of company’sbond |
|----------------|-------------------------------------------------------------|

| 9.   | decide      the decision about the add or deduct the shareholders, merger, separate,      discrete, liquate or change thecompany |
|----------------|----------------------------------------------------------------------------------------------------------------------------------|

| 10.   | decide      the decision about the company’srule |
|-----------------|--------------------------------------------------------|

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| 11.   | examine      and approve the warrants of Section23 |
|-----------------|----------------------------------------------------|

| 12.   | consider      the purchasing and selling of company’s asset, which exceeds 30% of the      company’s audited net asset in the current period within one      year |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.   | consider      CSOP (Compensation Stock OptionPlan) |
|-----------------|----------------------------------------------------|

| 14.   | consider      administrative regulations, departmental rules and regulations, and other      matters should be decide by board of directors set by the      regulations |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | First      meeting for shareholders’ commitment will be called and held by the      shareholder who invests the most. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------|

| 2.   | Meetings      for shareholders’ commitment include scheduled meeting and temporary      meeting. Scheduled meeting should be held on time according to the      schedule set based on company’s regulation. Temporary meeting should be      held when Representatives of more than one-tenth of the shareholders the      right to vote, more than one third of the directors, the board of      supervisors proposal to temporarymeetings |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Shareholders      meeting convened by the board of directors. Sole board of directors will      hold. If sole board of directors cannot performing his duties or do not      performing his duties, vice sole board of directors will hold. If vice      sole board of directors cannot perform his duties or do not performing his      duties, the director who appointed by more than half of directors will      hold. The board of directors cannot or does not performing their duties,      the board of supervisors will host the meeting. If board of supervisors do      not host, representatives of more than one-tenth of the shareholders the      right to vote, more than one third of the directors can    host. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | The      annual meeting for shareholders’ commitment should be announced to all the      shareholders’ 20 days before the meeting. The temporary meeting should be      announced to shareholders 15 days before the  meeting. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Shareholders’      commitment should record all the decision about contains discussed during      the meeting. All the participated shareholders’ should have signature on      the record. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | the      decision discuss on meeting, about changing on the company’s regulation,      increasing or decreasing the registration capital, and company’s merging,      separating, or changing the format of company, and issuing company’s loan,      must have 2/3 and above to agree. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.   | Call      for the shareholders’ commitment meeting and report the    work. |
|----------------|----------------------------------------------------------------------------------|

| 2.   | Executive      the decision of shareholders’ commitment  meeting. |
|----------------|-------------------------------------------------------------------------|

| 3.   | Decide      company’s operation plan and investmentplan. |
|----------------|----------------------------------------------------------------|

| 4.   | Make      company’s annual budget and actual financial  plan. |
|----------------|---------------------------------------------------------------------|

| 5.   | Make      company’s plan about the separation of profit and coverage of      loss. |
|----------------|------------------------------------------------------------------------------------------|

| 6.   | Make      company’s plan about increasing or decreasing registration capital and      issuing company’s loan. |
|----------------|---------------------------------------------------------------------------------------------------------------------------|

| 7.   | Make      company’s plan about separating, merging, diluting, and changing company’s      format. |
|----------------|---------------------------------------------------------------------------------------------------------------|

| 8.   | Decide      the setting of company’s internal  authorizations. |
|----------------|----------------------------------------------------------------------|

| 9.   | Appoint      general manager of the company. According to managers’ require to appoint      or dismiss vice general manager. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Develop the company's basic      management system. |
|-----------------|-----------------------------------------------------|

| 11.   | Develop      charter amendment proposal. |
|-----------------|------------------------------------------|

| 12.   | Listen to reports on the work of manager, and      inspect manager’s  work |
|-----------------|----------------------------------------------------------------------------------|

| 13.   | Laws and administrative      regulations, departmental rules and regulations or the statute of the      other powers conferred. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| 1.   | Board      of directors should have meeting at least twice per year. Sole board of      directors will call, announce to all the directors and supervisors 10 work      days before the meeting and deliver contains for the meeting. Representative of 1 / 3 or more than the right to vote,      the shareholders, 1 /      3 or more than the directors or board      of supervisors can propose to hold temporary Board of Directors      meeting. Sole board of directors should call and hold the meeting in 10      days from the day gets theproposal. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Board of directors meeting will be called and held by      sole board of directors. If sole board of directors cannot      performing his duties or do not performing his duties, vice sole board of      directors will hold. If vice sole board of directors cannot perform his      duties or do not performing his duties, the director who appointed by more      than half of directors will hold. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Board      of directors should record items for discussion should be on the meeting      made the decision. |
|----------------|-------------------------------------------------------------------------------------------------------------|

| 4.   | voting      for board of directors’ decision is one vote per  person |
|----------------|----------------------------------------------------------------------------|

| 5.   | Board      of directors’ decision will be available after more than half of the      directors agree. |
|----------------|-------------------------------------------------------------------------------------------------------------|

| 6.   | The meeting for board of directors      will be announcing 10 work days before the meeting      and deliver contains for themeeting. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------|

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| 2.   | General Manager for company will be      appointed by Party (2). |
|----------------|------------------------------------------------------------------|

| 3.   | General Manager is responsible to the      following duties: |
|----------------|--------------------------------------------------------------|

| a)   | Host company’s production, operation and      management. Organize and executive the decision      of the board of directors. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Organize and executive      company’s annual operation plan and investment      plan. |
|----------------|---------------------------------------------------------------------------------------------|

| c)   | Develop internal management authorizations set up plan. |
|----------------|--------------------------------------------------------------|

| d)   | Develop company’s internal basic management      rules. |
|----------------|---------------------------------------------------------------|

| e)   | Set company’s    regulation. |
|----------------|------------------------------------|

| f)   | Require      to appoint or dismiss vice manager, CFO, and chief    accountant |
|----------------|-------------------------------------------------------------------------------|

| g)   | Decide      to appoint or dismiss the other managers not decide by board of      directors |
|----------------|--------------------------------------------------------------------------------------------|

| h)   | The other duties given by this      agreement or board ofdirectors. |
|----------------|---------------------------------------------------------------------|

| 1.   | Company set CFO and chief accountant as      mangers for finance. |
|----------------|-------------------------------------------------------------------|

| 2.   | Chief accountant will be appointed by      Party (1), CFO will be appointed by Party (2). |
|----------------|-------------------------------------------------------------------------------------------|

| 3.   | When party (2) needs to provide      financial statement according to the requirement of foreign authorization,      CFO will be sign and be responsible as managers for finance; otherwise, chief accountant will      be responsible for company’s regular financial job. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | Check company’s finance. |
|----------------|--------------------------------|

| 2.   | Monitor      directors and senior managers in the execution of the duties of the      company. Recall directors and senior managers who are in violation of the law,      Administrative regulations, this agreement and      shareholders’ commitment’s  decision. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 3.   | When directors and senior managers’ action harm the company, require them to correct      it. |
|----------------|----------------------------------------------------------------------------------------------------------|

| 4.   | Propose the convening of temporary      shareholders’ meeting. When the board of directors      does not perform      their duties set by Company’s      Law, hold and call      for the shareholders’  meeting. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Sue directors and senior managers      according to Company’s      Law. |
|----------------|-------------------------------------------------------------------------------|

| 6.   | Do the research when      they find abnormal      operation of the company. Require accounting firm and lawyer      firm to provide      assistance, the cost will be paid by  company. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | Board      of supervisors will call for a meeting at least every 6 months.      Supervisors can propose for temporary supervisors’  meeting. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Board      of supervisors will set board of supervisors’ rules of procedure, clear the board of supervisors of      procedure and voting procedures and make sure work      efficiency and scientific decision-making of the board of      supervisors. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Board of supervisors under the      rules of procedure of the board of supervisors held and voting procedures      will be approved by shareholders as annex of this      section. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Board of supervisors should record all the decision      discussed during the meeting.      All the supervisors who      participated should sign on therecord. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Supervisors have right to require a      described record for his speak during the      meeting on the record. Board of supervisors’ meeting record will be saved as      company’s document for at least 10      years. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | announcements for board of supervisors’ meeting should include the      following items: |
|----------------|------------------------------------------------------------------------------------------------|

| (1)   | date, place and meeting      deadline |
|-----------------|---------------------------------------|

| (2)   | subject and      topic |
|-----------------|------------------------|

| (3)   | date of issue the      notice |
|-----------------|-------------------------------|

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| 1.   | In 3 days of sign this agreement,      Party (1), Party (2)      and Party (3) agree to found “Qujing Gas Co. Ltd      Preparatory Committee”. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Preparatory committee’s member will be appointed by      Party (1), Party (2) and Party(3). |
|----------------|---------------------------------------------------------------------------------------------------|

| 3.   | Preparatory committee is responsible to all      the services relate to found company. |
|----------------|----------------------------------------------------------------------------------------|

| 4.   | The expenses related to found company      will borrow from Party (1), Party (2) and Party (3), and will be      committed by company after found. If the company cannot found, the      expenses will be committed by Party (1), Party (2) and Party (3) according      to the shares      percentage. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Members of preparatory committee do not count wages,      after company set up will give appropriate subsidies. |
|----------------|----------------------------------------------------------------------------------------------------------------------|

| 6.   | When the company meets resistance for      set up, preparatory committee bring to Party (1), Party (2) and Party      (3)’s resolution. Only when Party (1), Party (2) and      Party (3) agree to do not set up the company, the company preparatory      committee can stop set up thecompany |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | When company get license, the preparatory committee will      dissolute. |
|----------------|--------------------------------------------------------------------------|

| 1.   | Since the formal signing of this      Agreement after the entry into force, Party (1), Party (2) and Party      (3) or their representatives will open a      common bank account after reach the agreement.      If all the shareholders or their      representatives do not sign, no one allow using the funds in the bank      account. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Party (1), Party (2) and Party (3)      should follow Section 6 of this agreement, and put first payment into the      bank account |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | In 3 days of the company set up,      Party (1), Party (2) and Party (3) or their representatives      will dissolute manage      the common account. People from company preparatory      committee will transfer registration fund to company’s basic    account |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | If Limited Co. cannot set up, in 2      days Party (1), Party (2) and Party (3) decide not to set up the company,      Party (1), Party (2)      and Party (3) or their representatives will dissolute manage the common      account. People from company preparatory      committee will return registration fund to Party (1), Party (2) and Party      (3)’s basic      account. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.   | This agreement can be changed      according to      changes in existing      laws, sets in new      laws, new local regulations and agreement reached by parties after equal      negotiation. If one party proposes to change this agreement, it      should announce other parties in written documents in 30 days, only after Party (1),      Party (2) and Party      (3)’s negotiation and reach agreement,      this agreement can be      changed. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | this agreement can be disarmament      before the Limited Co. because of the following      situation: |
|----------------|--------------------------------------------------------------------------------------------------------|

| a)   | the parties reach agreement after      negotiation, disarm the    agreement |
|----------------|-----------------------------------------------------------------------------|

| b)   | any parties cannot      perform their duties      and obligations In accordance with the manner and timing of this      agreement |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| c)   | After      disarmament of this agreement, each party’s duties and obligations under      this agreement ended immediately, however, the parties which cause the      disarmament of this agreement will be responsible for      defaulting. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | “Irresistible factors” mean the factors cannot be      avoided causing any parties cannot fully      or partially perform their duties set by this agreement before sign this      agreement. This kind of factors include      earthquake, typhoon, flood, fire, war, domestic or international traffic accident, government or public authority’s behaviors, disease, civil unrest, strike, and      unpredictable, unavoidable, unfeasible  situation. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | When irresistible factors happen, the      party’s duties is affected by the      irresistible      factors and causing      delay of the duties. The duties should be extension automatically. The      party will not be responsible for breach of contract      responsibility. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | The party relates to irresistible      factors should announce to the other parties      immediately in      written form, and provide the proof of causing and period of irresistible      factors. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | When irresistible factors happen, each      party should      negotiate for find fair plan of solution in time, and try best to reduce      the effect to the lowestlevel. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | This agreement applies the law in the      People’s Republic of China. |
|----------------|------------------------------------------------------------------------------|

| 2.   | In the course of the agreement to      the dispute, the parties should first be resolved through      consultation.      If the consultation is      not      successful, any      parties can propose arbitration to China International Economic and Trade      Arbitration Commission. The outcome of arbitration have the force of      law to all investment      parties |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | The result of arbitration will be executive by      People’s  court. |
|----------------|----------------------------------------------------------------------------|

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| 1.   | The      parties to this agreement due to the implementation of this agreement is      made or to provide each other all the notice, documents, data, are send to      the address and fax list on Section 1 of this agreement. If one party      change address and phone number, the party should notice to other parties      in 3 days in written form. The loss due to delaying notice, the party made      mistake will be responsible for themistake. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Personally delivered the document      considered in the delivery of service. Served in a fax served as by facsimile. Service delivered by mail will be      considered at when registered sent or post for the    day. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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